More money or better culture: what should you offer new hires?

According to a new survey by Hibob, today’s job seekers are placing more value on culture and balance instead of just salary.

A new study from Hibob suggests that job seekers are looking for more than just extra figures added to their salaries. Culture, among other factors, is moving higher on their lists of priorities.

The people management platform reported that nearly three-quarters of candidates surveyed (70pc) would turn down a high-paying job offer if the culture seemed lacking.

“Poor culture and employee dissatisfaction are driving away more than two-thirds of candidates. In order to thrive in today’s quitting economy, companies must create workplace experiences designed to retain today’s workforce by promoting a clear work-life balance,” said Ronni Zehavi, CEO of Hibob.

“While popular trends in perks have come and gone, culture and opportunity are key drivers of employee happiness and support collaboration and productivity.”

What do modern employees want?

Modern workforces are multi-generational and diverse with evolving needs and priorities, and for employers to attract and retain the right people, they will need to adapt.

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Clear opportunities for growth and a strong corporate culture are top priorities for job seekers, according to Hibob’s report, with 56pc of employees ranking opportunities for growth as more important than salary, underscored by the fact that only 25pc of employees left their previous role because they felt underpaid.

Advances in technology have led to more challenges in achieving a work-life balance, and with 77pc of employees feeling corporate culture is extremely important, ensuring those boundaries are established has become more and more of a priority. This is strongly reflected in the reported 45pc of candidates who let holiday time inform their job decision, and the 35pc who are influenced to some extent by their potential commute distance.

What are the turn-offs?

Even if a company is offering clear growth opportunities, a competitive salary and the other benefits job seekers crave, there are several factors that can still cause a job seeker to say no to an offer.

Hibob’s survey showed that 69pc of candidates will reconsider a role if a company has a high staff turnover or if current employees seem burnt out, signalling to them a lack of employee satisfaction and a weak culture.

Once an offer has been accepted, companies must make a strong first impression on new team members to retain talent – 64pc of new hires are less likely to stay at a job after a negative onboarding experience. While competitiveness among team members or a boring culture can also make more than 30pc of candidates reconsider a job offer, overworked employees or high staff turnover are still the largest deterrents.

The key takeaways for companies looking to hire are to really listen to how their candidates want to work, and to foster a culture in which meaningful balance is realistic and achievable.

Lisa joined the team as senior Careers reporter in July 2019 with previous experience in science communication and media. With a BA in neuroscience and a master’s degree in science communication, she is also a semi-published poet and a big fan of doggos.

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